Ratios & Harmonics: a Different Way to Trade

Quoting pampaq

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We are monitoring this pair since last week, we have a 1to1W with a candlestick pattern BT daily which makes us think of a likely bounce higher, HOWEVER in M, we do not see an area of MS, so this stop would be in the air, that would be building its own support in W and D. He has left a doji of indecision, which closed in the maxima of the previous candle. to break higher, we will go to 38% of 1to1, and to break down, have a great void price until next support zone will see, greetings. {image} {image}

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Quoting Masterrmind

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{quote} It is an AB=CD pattern. Very clear indeed. This is what you need to know in short and without elaborating too much (please find time to study some material as fast as you can...it will be worth it I assure you of that!) Ok back to the lesson....... 1. Measure the pips from point A to point B say its 100 pips 2. The BC leg is a pullback of 38.2% of the AB leg (so its pulled back in the opposite direction by about 38 pips) simple enough right? 3. Now if you measure from point C to point D you will get say 100 pips This is how AB=CD ie distance...

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Quoting pampaq

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{quote} Track entry when there is strong mmtum, and reach an area of MR or MS, as in this case, usually, we have a complete pullback. ie ABCD. That is nothing, that zig zag correction (70% of the time), and then returns to the main trend. In this case D if D is accelerated, high probability of breaking the MS. If this D is weak, high probability of success that the price returns. And that's what we tested. In this case, it would have been very cautious, taking some 30 Pips, which gave the trade, as this is an example, I leave it running. In short,...

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Quoting whtop

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I am currently learning harmonic pattern by the book Mr.pips recommended. And I'm really confused by this AB=CD illustration in the book. Shouldn't the D at 2.618 rather than 2.24(because 1/0.382=2.618, isn't?). Can anybody help me with this?{image}

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Quoting honestknave

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{quote} From my maths, you are correct. It should be 2.618. Personally, I don't focus on that extension because I think it can give you a false sense of confluence. To my simple mind, if AB = CD then the C retracement has already determined the extension. It cannot vary. If we focus on this extension, we run the risk of thinking we have a second point of confluence (1:1 AND 2.618 extension). But in fact they go hand in hand and cannot be any different. So there is no confluence, just more lines on a chart. Nevertheless, it can be useful for creating...

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Quoting Aj1

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Hello Traders I am currently monitoring the EU 1 min, market is bearish, waiting for the price to reach the golden zone of the smaller swing, and the 50 of the larger swing. Will be keep any eye on weakness in this targeted area, with structure for a continued move down. {image}

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Quoting whtop

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I am currently learning harmonic pattern by the book Mr.pips recommended. And I'm really confused by this AB=CD illustration in the book. Shouldn't the D at 2.618 rather than 2.24(because 1/0.382=2.618, isn't?). Can anybody help me with this?{image}

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Quoting whtop

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{quote} Thank you Matermind. But that's where my puzzles lies. For me, AB=CD is like a parallelogram. Say AB=100, BC=38.2, CD=100. So CD/BC=2.618 rather than 2.24. (I can't understand 2.24 should be the answer). And there are other example on the book, like 0.786/1.27, 0.618/1.618, these pairs make sense to me. It is just I think the right match for 0.382 is 2.618, so that a parallelogram can form.

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Quoting honestknave

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{quote} I've been watching this too... price certainly seemed more interested in the 38.2 than letting the AB=CD complete! {image}

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Quoting jpnavigate

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{quote} Just goes to show that the bears are in control.

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Quoting pampaq

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A bullish breakout, we will see if it reaches the next zone MR. You can add batch, in some regression 5M. regards {image} {image}

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Quoting honestknave

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{quote} Indeed! Jumped on the bear train as it went through 1.13... now pondering a reload in the golden zone but the recent bullish strength is concerning.

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Quoting honestknave

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{quote} Well, I went ahead and bought my ticket anyway: {image}

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Quoting jpnavigate

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{quote} Can't see from your chart; however, did the 61.8% retracement coincide with resistance or anything?

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Quoting honestknave

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{quote} Hello, yes sorry that was a busy (working) chart. Hopefully this will help explain things a little better: Price did correct beyond the 78.6, but "looking left" (off the chart) clearly showed the significance of this area. The corrective swing comprised of an AB=CD (green), with a smaller scale 61.8AB=CD (red). The latter fell away from the line, which was a good sign that price would react. It was an aggressive entry (some might consider pre-emptive) but the stop was very tight located just above the green line (1.13500). Price reacted...

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